Do I Need Rental Car Insurance Coverage
You May Already Have Rental Car Insurance Coverage
And You Can Also Save Money on Rental Car Insurance

Every time you rent a car, you’re asked to purchase an insurance package from the rental car company. Are you buying rental car insurance coverage you don’t need or are you driving without insurance coverage that you should have? Most personal auto policies also cover rental cars. In general, the best way to protect yourself before you rent a car is to call your insurance agent. Ask specifically about the types of coverage you need for a rental car, collision damage insurance, comprehensive insurance and liability insurance.

1. Rental Car Insurance Coverage
2. There are Four Types of Insurance Coverage on a Rental Car
3. You Need Liability Insurance Coverage on the Rental Car
4. You Need Comprehensive and Collision Insurance Coverage for the Rental Car
5. You Need Personal Accident Insurance Coverage on a Rental Car
6. You Need Personal Effects Insurance Coverage on the Rental Car

1. Rental Car Insurance Coverage

Possible savings on your rental car insurance. Car insurance purchased from the rental agency can add $10 to $25 a day on your bill. Why should you pay for insurance coverage you already have?

A Popular Misconception about rental car insurance. Some people think that if they buy insurance from the car agency and have an accident in the rental car, it won’t be reported to their personal insurance company. So very wrong! If you are at fault in an accident, your personal insurance company can raise your rates, even thought it didn’t have to pay the claim for the accident.

2. There are Four Types of Insurance Coverage on a Rental Car

When you rent a car, you will be offered 4 types of insurance coverage. Some of these could be covered by your personal or corporate auto and health insurance. To be properly covered in your rental car, your existing policy must include liability, comprehensive and collision coverage for rental vehicles.

3. You Need Liability Insurance Coverage on the Rental Car

Liability insurance covers you if you injure another person or destroy property in an accident. Your personal or business auto coverage normally covers this when you are renting a car. You may save money on rental car insurance if you check first with your car insurance agent. Rental companies are required by law to provide the minimum level of liability insurance required by your state. Generally, this does not offer enough protection in a serious accident. The rental agency will sell you a liability insurance supplement, called LIS, with coverage of up to a million dollars during the time you rent a car. It could cost about $9 to $14 a day. If you have adequate liability coverage on your personal car or an umbrella policy on your home or auto, you probably don’t need to purchase more liability insurance from the rental agency.

Maybe you don’t own a personal car. If you do not already have personal liability coverage, you should purchase insurance coverage at the car rental agency. Perhaps you rent cars frequently. Instead of buying liability coverage from the car rental company each time you rent a car, you can purchase a non-owner auto liability insurance policy from an insurance company for about $300 a year. This could save you money.

4. You Need Comprehensive and Collision Insurance Coverage for the Rental Car

Rental car companies will hold you totally responsible for your rental vehicle if it is damaged or stolen. Comprehensive and collision insurance covers you in the case of car damage or theft of the car. Collision and comprehensive insurance does not cover damage to someone else's car during your rental period. For that coverage, you need liability insurance.

Collision Insurance is also called Collision Damage Waiver, CDW, Loss Damage Waiver LDW, or Physical Damage Waiver, PDW. The collision insurance from the rental agency may not cover an accident if you are speeding, driving on unpaved roads or driving while intoxicated. It may not cover you if you are driving out-of-state. Some rental car insurance excludes tires, wheels and glass, which means you pay the cost to repair a flat or a cracked windshield. This coverage generally costs between $9 and $19 a day.

Save Money on Credit Card Coverage. Did you know that some credit cards provide collision and comprehensive coverage if you pay for the rental car with the credit card? However, no credit card provides liability insurance. Check with your credit card company first, because all cards are different, and some card companies have reduced their insurance coverage. There is an 800 number on the back of the credit card. Ask how much coverage you have and for what. Ask what car models are covered. Teenage drivers may not be covered, or driving outside the U.S. Business use might be excluded also. Sometimes credit card insurance is “secondary,” which means that your own insurance company, if you have one, is the primary payer.

No Collision Insurance on Your Own Car? You may not have collision insurance coverage if you normally drive an older car. In this case, you’ll want to purchase a policy at the rental counter. Your insurance agent also has a policy to cover you in this instance. If you rent cars frequently, it will be cheaper than the policy at the rental agency.

5. You Need Personal Accident Insurance Coverage on a Rental Car

Personal Accident insurance coverage pays the medical/ambulance bills for you and your passengers injured in an accident. It also provides a one-time payment for you or a passenger in case of death or maiming from a car accident. It may cost about $1 to $5 per day. This coverage is generally included in your auto or health policies. It may be unnecessary if you are covered by health insurance or have adequate medical coverage under your auto policy

Limits and Exclusions. Ask your insurance agent if there is a dollar limit on your collision insurance. Some insurance companies set a limit on what they will pay. They may exclude coverage for luxury vehicles. If you are renting a more expensive car than the one you drive at home, see if your policy will cover the higher value of the rental car. There may also be exclusions for teenage drivers and driving outside the U.S..

6. You Need Personal Effects Insurance Coverage on the Rental Car

Personal Effects Coverage, PEC, is also called Personal Property Insurance, PPI. It will reimburse you for the cost of personal items stolen from your car. However, if you have homeowners or renters insurance, you may already be covered for the value of items stolen from the rental car, subject to your deductible. At the car rental agency, PEC insurance usually costs about $1 to $4 per day. You may need receipts or other proof of ownership when you make a claim.

Ultimately, it's up to you to make sure you're covered. So plan ahead. If you have personal auto insurance, call your agent and find out what kind of coverage you have. You may not need more rental car insurance coverage. And maybe you can save money.

I hope life brings you much success.
I wish you a very happy day.

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